TLDR
- Robert W. Baird analyst Colin Sebastian maintained a Buy rating on AMD with a $300 price target, citing the Meta partnership and multi-year AI revenue visibility.
- Meta and AMD signed a multi-year deal to deploy up to 6 gigawatts of AMD Instinct GPUs across Meta’s AI infrastructure.
- First shipments of 1GW are targeted for the second half of 2026, using MI450-based GPUs paired with EPYC “Venice” CPUs on the Helios rack-scale platform.
- The deal includes a performance-based warrant for up to 160 million AMD shares, potentially giving Meta a ~10% stake if fully exercised.
- Evercore ISI also holds a Buy rating on AMD with a $358 price target.
Advanced Micro Devices just landed one of the biggest AI hardware deals in recent memory.
Meta 🤝 AMD
Today we’re announcing a multi-year agreement with @AMD to integrate their latest Instinct GPUs into our global infrastructure. With approximately 6GW of planned data center capacity dedicated to this deployment, we’re scaling our compute capacity to accelerate the… pic.twitter.com/a6lNWsfRci
— AI at Meta (@AIatMeta) February 24, 2026
Meta and AMD confirmed a definitive multi-year, multi-generation partnership on February 25, 2026, to deploy up to 6 gigawatts of AMD Instinct GPUs across Meta’s next-generation AI infrastructure.
The scope of the deal is hard to ignore. Each gigawatt of deployment could generate many billions of dollars in sales for AMD, according to Robert W. Baird analyst Colin Sebastian.
Advanced Micro Devices, Inc., AMD
Sebastian maintained his Buy rating on AMD stock, keeping his price target at $300.
He pointed to the Meta deal as a key driver of improved visibility into AMD’s AI revenue over multiple years — not just one or two quarters.
The first 1GW shipments are expected to begin in the second half of 2026. Those will use a custom Instinct GPU built on AMD’s MI450 architecture, running on the Helios rack-scale platform developed through the Open Compute Project.
That first deployment will also pair the MI450 GPU with AMD’s 6th-generation EPYC CPUs, codenamed “Venice,” running ROCm software.
The Warrant Deal
One of the more eye-catching parts of the agreement is a performance-based warrant for up to 160 million AMD shares.
The warrant vests as shipment milestones are hit — starting with the first 1GW delivery and scaling toward the full 6GW commitment. Additional technical and commercial conditions also apply.
If fully exercised, the Financial Times and AP both report this could give Meta a stake of up to 10% in AMD. That kind of structure ties Meta’s financial interest directly to AMD’s execution.
Meta said the partnership is designed to give it more flexibility and resilience in its AI compute stack by working with multiple suppliers rather than depending on one vendor.
AMD framed the deal as a long-term ramp spanning GPUs, EPYC CPUs, and rack-scale systems built around Meta’s specific workloads.
Analyst Reaction
Evercore ISI separately maintained its Buy rating on AMD with a price target of $358 — the highest of the two analyst views mentioned.
Both analysts see the Meta deal as a concrete signal that AMD is positioning itself as a credible alternative to Nvidia in large language model infrastructure.
The structured warrant agreement, tied directly to shipment milestones, adds another layer — it aligns Meta’s incentives with AMD’s ability to deliver at scale.
AMD’s first 1GW shipments to Meta are scheduled to begin in the second half of 2026.
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